More reasons why Toronto is the incel capital of the world

[CornbreadFed]

Really? Then after 4 years you have another president (ie or civil war of this president becomes total dictator and has a third term after a rigged election), then what? If the mid-terms are a disaster then it's the beginning of the end of that.

China & Russia are loving it right now

 

[Clockwerk50]

You also have to take into account the extra revenue brought in by tariffs, as well as long-term benefits such as increased investment into domestic manufacturing (to avoid paying tariffs) and the resulting job creation. These are difficult to measure and may take years to materialize but potential benefits could be massive compared to a short-term loss of tourism dollars.

I'm not sure how that would work. For example, Harley-Davidson moved its manufacturing plant from Wisconsin to Thailand in 2019 due to tariffs. I linked the below article but it says "Harley-Davidson opened a plant in Thailand in late 2018, largely in response to a 31% tariff the European Union slapped on U.S.-manufactured motorcycles, which in turn was a response to then-President Donald Trump's tariffs on European steel and aluminum imports."

Also, I might be viewing this the wrong way, but if a Chinese wrench costs $2 to manufacture and a U.S. made one hypothetically costs $10, it would still result in a better gross profit to buy the Chinese one, even with a 145% tariff, bringing the cost to $4.90.

Harley-Davidson moving more motorcycle production to Thailand

 

[Bokanovsky]

I'm not sure how that would work. For example, Harley-Davidson moved its manufacturing plant from Wisconsin to Thailand in 2019 due to tariffs. I linked the below article but it says "Harley-Davidson opened a plant in Thailand in late 2018, largely in response to a 31% tariff the European Union slapped on U.S.-manufactured motorcycles, which in turn was a response to then-President Donald Trump's tariffs on European steel and aluminum imports."

Also, I might be viewing this the wrong way, but if a Chinese wrench costs $2 to manufacture and a U.S. made one hypothetically costs $10, it would still result in a better gross profit to buy the Chinese one, even with a 145% tariff, bringing the cost to $4.90.

Harley-Davidson moving more motorcycle production to Thailand

No one really knows what is going to happen in the long term. Yes, there may be some American companies that decide to manufacture some of their products abroad to avoid counter-tariffs. However, logic suggests that the U.S. would still be a net beneficiary. As of right now, the U.S. imports a hell of a lot more manufactured goods than it exports.

Regarding your Chinese wrench example, what will likely happen is that the manufacturer would move production out of China but not to the U.S. Rather, it would be moved to some other Asian country that is tariffed at "only" 30-40%, as opposed to 145%.

I don't think anyone is expecting tariffs to bring back manufacturing of basic low cost items such as hand tools and clothing. However, they are much more likely to repatriate manufacturing of expensive goods, where labour costs make up only a small fraction to the item's overall cost. Take smartphones, for example. The cheapest iPhone sells for $1,129 but it only costs about $10 to put together in China. This is nothing compared to the cost of components/materials, R&D and marketing. If production was moved to the U.S., labour costs per item would increase significantly. Instead of $10 per item, it could be $50 or maybe even $100. Still, labour would remain a relatively small portion of the overall cost of the iPhone. So if the options are (a) move manufacturing stateside and raise the retail price to $1,219 or (b) keep manufacturing in China and raise the price to $2,766.05, the choice is pretty clear. Yes, Apple would have to incur significant investment costs in terms of building factories in the U.S. but if would be worth it in the long run if high tariffs were expected to become permanent.

 

[CornbreadFed]

I can't believe that civil war movie is going to come true